The Sekyere Rural Bank Limited at Jamasi in the Sekyere South District of Ashanti Region has posted an impressive operational performance in the 2018 year under the review.
The bank recorded a profit before tax of GH¢ 1,170,166 in the reviewed year from a loss of GH¢ 306,932 in 2017, representing an impressive 481% growth rate.
This significant growth in profit, in spite of the major issues that confronted the Ghanaian banking industry, is attributed to the contribution of the bank’s esteemed shareholders and dedicated customers, who have demonstrated continued trust in the services the bank provides.
The huge growth in profit also demonstrates the enviable skill and capacity of the board, management and staff of the bank, who in spite of all the challenges in the banking system, have weathered the storm, to return the much needed profitability to shareholders of the bank.
The total interest and other operating income by the bank comes with an improved revenue generation raising total income from a little over GH¢17.8 million to approximately GH¢ 20.1million which is a reasonable improvement in the bank’s income generation activities reflecting the careful execution of strategy during the year under review.
The Chairman of the Board of Directors, Mr Francis Denteh announced these and more at the Bank’s 30th Annual General Meeting of shareholders held late last year at the Calvary Methodist Church auditorium at Kronom a suburb of Kumasi.
According to him, Ghana’s economy in 2018 witnessed improvement on major macroeconomic indicators compared to 2017, with the exception of the Ghana Cedi, which depreciated by 8.4% against the United States Dollar, compared to 4.9 per cent in 2017.
He mentioned that inflation steadily declined from 11.8 per cent in 2017 and ended the year at 9.4 per cent. The Bank of Ghana monetary policy rate decreased by 300 basis points, ending the year 2018 at 17 per cent from 20 per cent as was witnessed in the previous year. The Government of Ghana Treasury Bill ended the year at a rate of 14 per cent compared to 13 per cent in 2017.
In spite of the challenging macroeconomic and political environment that pertained during the reviewed year, the bank managed to pull yet another impressive operational performance in all the financial indicators particularly in profit in the year under review as shown in the table.
|Performance Indicator||2018 (GHS)||2017 (GHS)||% Increase|
|Loans and Advances||25,308,635||21,673,120||17|
|Profit /(Loss) Before Tax||1,170,166||(306,932)||481|
In line with the Board of Directors’ decision to ensure that the financial returns to shareholders of the bank continue to grow, The Board of Directors have recommended dividend payment of GH¢ 0.00362 per share, amounting to GH¢ 250,000.00 for the year ended 31st December, 2018.
Corporate Social Responsibility
The Bank continues to provide support to communities and institutions within its catchments area. The Bank spent a total of GH¢71,858 on Corporate Social Responsibility .The major economic areas that beneﬁted include Education, Health, Security, Agriculture and Traditional council Financial Support towards Farmers’ day celebrations and scholarship awards to needy but brilliant students who are resident or hail from the Bank’s catchment areas.
The General Manager of the Bank, Mr Michael Aidoo in an interview with Business & Financial Times said that bank would continue to pursue growth as strategies that would continue to drive the bank towards achievement of the vision of becoming the rural bank of choice in Ghana.
He emphasized that the bank would continue to achieve significant prowess, in spite of the highly competitive banking industry in which they operate.
Good corporate governance, effective risk management practices, advanced compliance programs and excellence in customer service would continue to be given significant attention by the Board and Management, to help safeguard the bank and grow its assets.
Technology and digitization continue to be a critical success factor in today’s banking and the board and management would continue to employ a lot more technologically efficient and effective methods, to better serve its cherished customers.
Regulatory advice & commendation
The Ashanti Regional Manager of ARB Apex Bank Mr George Annor, who represented the Managing Director Mr Kojo Mattah commended the board, management and staff for the sterling operational performance in the 2018 year under review.
He advised the shareholders to vote for competent people to be on theIR board to take very prudent decisions as well as give strategic direction of the progress of the bank.